Value Chain Networking: Leveraging Technology

This article is an excerpt from the Total Financial Network (TFN) white paper by Christopher Vincent titled Value Chain Networking.  Download the entire white paper in pdf format HERE.

This is Part 4 – Return to the Introduction

Technology Closes the Gap

Given advancements in both internet and mobile technology in the last several years how businesses position themselves has now become a continually evolving rule-book.  As Michael Dell stated, “…a fundamental shift in the definition of value is occurring. There used to be value around inventory; now there’s value around information.”

Companies need to consider the implications of leveraging the Internet for their business. Simply establishing a web site-putting a web front-end on top of your company-is not going to create the efficiencies you need. You must re-think how you’re going to use information more efficiently, and drive inefficiencies out of the system.

In the past in order to hold meetings, form alliances and meet like-minded people, physical travel was required. With the onset of new tools for interaction this is no longer a pre-requisite. This allows for the rapid development of capabilities on the fly with collaborators that are minutes or miles away.

How a company creates this interface both internal and external will shape how their Value Networks develop either intentionally or unintentionally. For those businesses that seek to build a strong Value Network with collaboration that maximizes market exposure and minimizes costs along the value stream, technology integration is a must.

Example; for years businesses have been able to link partner (website link) with other business to improve traffic, search engine ranking among other intrinsic benefits. Today businesses can go a step further and use social media outlets such as Facebook to directly communicate back and forth with each other’s customers.

In reverse, consumers can set up a forum for any given activity or topic, and businesses that support that activity or topic can chime in to answer questions and offer support. For example a potential customer may ask what size tire fits their car on an automotive forum. A local tire dealer can assist this customer remotely and directly impact many other potential customers at the same time.

From a business – supplier standpoint, businesses may setup knowledge centers for their customers and give them direct access to the supplier for further assistance. This is a practice that has been around especially in warranties for years. Now with the advancements in communication it can be expanded and even implemented as a core customer support strategy.

Technology of today has made it easier than ever before for all companies to engage intentionally in the development of the Value Networks that impact their business.

Continue to the Value Chain Networking Summary